Circle's stock gained on Thursday after Bernstein reiterated its Outperform rating and $140 target, arguing that the stablecoin issuer's mixed second-quarter results challenged the bearish case against the company. Bernstein analysts described Circle's second-quarter report as a counter thesis to the bears, retaining its Outperform rating and $140 price target, more than double Circle's Thursday price of $65.29.
Q2 Results
The company reported $701 million in total revenue and reserve income, a 7% increase from the same period last year, although missing consensus estimates by about 2%. Profitability was stronger, with adjusted EBITDA rising 8% year over year to $143 million.
USDC Circulation
USDC circulation ended the quarter at $73.3 billion, representing 19% annual growth but a 5% decline from the $77 billion reported at the end of the first quarter. Onchain transaction volume reached $14.8 trillion during the quarter, up 151% year over year.
Arc Blockchain
Circle plans to launch Arc's public mainnet on Sept. 16, with several major companies serving as founding validators. Bernstein identified Circle's Arc blockchain and payments partnerships as possible sources of revenue outside interest earned on USDC reserves.
